At least new flats are on sale in Prague in ten years, and their prices are still rising
“The gap between supply and demand is open to almost the maximum, and unless a very complicated approval is accelerated, the situation can be critical,” said Marcel Soural, Chairman of the Board of Trigema. He considers the transfer of developers from the primary market to the rental market to be a way out of today’s situation.
In the third quarter, 1,350 flats were sold, half less quarter-on-quarter. The greatest interest was in two-bedroom apartments, which accounted for 40 percent of recent sales of new apartments. Three-room three-percent were sold, one-room 22 percent and four-room 10.5 percent. Developers sold most flats in Prague 4 and 9, where sales accounted for 17 percent. Together with Prague 5, 7, 8 and 10, they sold 87 percent of the total offer in these parts. Due to the quarter-on-quarter decline in sales, the same number of flats was sold only in the center.
According to the chairman of the board of Skanska Reality, Petr Michálek, the smaller offer of flats is the result of high interest in new housing and at the same time due to the long and complex permitting process of the new building. According to the director of Central Group, Dušan Kunovský, the rise in the price of flats is influenced by rising prices of construction work and materials. “The new government and the Chamber of Deputies should therefore do their utmost to ensure that the new construction is finally unlocked in a larger one. Without the situation continuing to worsen,” he said.
Jan Boruta from the FérMakléři.cz website believes that the ambition to facilitate the rules for new construction will not be reflected in anything quickly. According to him, the growth is based on rising inflation, which investors are afraid of in the future, and that is why they are buying apartments, ČTK told ČTK.